Posted on Sun, Jan. 28, 2007

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INVESTMENT, NEW JOBS

Low taxes key to state's economic growth

By Joe Taylor

South Carolina enjoyed an abundance of good fortune in 2006, and our state's economic forecast is even more encouraging for 2007. Today more South Carolinians are working, earning more money and spending more money than ever before. Our state reaped the benefits of a record-setting year for capital investment and job creation in 2006. Last year, the Department of Commerce generated $2.98 billion in capital investment and 14,290 new jobs. Those numbers soar to $6.98 billion and 15,090 when adding Duke Energy's new project in South Carolina. These achievements come on the heels of record accomplishments in 2005, and South Carolina is on course to achieve even more in the year ahead.

Our state is growing at a robust rate. The U.S. Census Bureau ranked South Carolina as the 10th-fastest growing state in the nation in 2006. We are performing well above the national average when it comes to job growth. South Carolina is growing jobs at a rate of 2.4 percent annually, outpacing the national average of 1.4 percent. In fact, there are nearly 151,000 more people working today in South Carolina than there were four years ago. Additionally, we continue to see state revenues grow as prosperity grows among our citizens and businesses. All of these positive economic indicators point to more good news for our state in the coming year.

South Carolina continues to receive national recognition for our dedication to creating a business-friendly environment. The Pollina Corp., a corporate relocation publisher, ranks South Carolina as the No. 1 Most Business Friendly State.

Our accomplishments come as a result of efforts to create an attractive economic climate for business growth in South Carolina. Businesses want to locate and grow where taxes are low, frivolous lawsuits are limited, and opportunity is abundant.

Thanks to Gov. Mark Sanford's leadership, the legislature took critical steps to better South Carolina's economic soil conditions. Companies in the Palmetto State saved $54.5 million in 2006 thanks to a reduction in the small-business tax rate. Keeping taxes low has helped keep consumer costs down and the economy growing. Working with the legislature, Sanford also led the charge to reform our tort system and reduce frivolous lawsuits.

We have also seen the benefits of creating unique financial incentives for the film industry in South Carolina. Thanks again to Sanford's vision, the Department of Commerce's Film Commission landed seven projects last year.

These efforts have created a business-friendly climate that has attracted new industry and encouraged growth among companies already doing business in South Carolina.

To achieve our ultimate goal of providing the opportunity for all South Carolinians to have high-wage, sustainable employment, we must continue the work we have begun. We must reform the workers' compensation system and ease the burden small businesses bear.

South Carolina must also feature our strengths and sell our successes. Our state worker training program, Center for Accelerated Technical Training, has received national recognition for its ability to deliver a highly skilled work force.

The Department of Commerce is taking a comprehensive approach to strengthen our economic development efforts at every level. For the first time ever, we are increasing our team efforts with a full-time secretary, a larger recruiting team, increased marketing to attract investment, and new responsibilities to streamline government operations and place more resources toward economic development. Our team effort is producing real results, but there is still much to be done.

Maintaining and committing to further reduce our low tax rate as well as keeping reasonable regulatory measures are necessary steps to ensure future economic growth.